Changes to the way in which businesses pay tax has led to the Leeds-based business advisor Hentons to invest heavily in its online and digital services whilst creating key partnerships with providers of online accounting software packages which is used by millions of UK businesses.
Making Tax Digital (MTD) is an HMRC initiative which is designed to make it much simpler and efficient for taxpayers. Making Tax Digital for Business (MTDfB) first begins on the 1st April 2019 with MDT for VAT. This means that businesses from this date who are VAT-registered and above the £85k threshold will have to keep digital records and submit VAT returns using compatible software. As for the income and corporation tax changes, they will come into effect from 2020 at the earliest.
Hentons have been creating its own systems to prepare for the changes and has adopted a number of relevant HMRC approved and recommended software packages and tools which is can introduce, implement and train clients on.
To help with the seamless transition, Hentons has established numerous platinum partnerships with leading software providers including QuickBooks, Xero and FreeAgent, with more partnerships imminent.
Pav Bagri, a partner at Hentons said:
“Many businesses are completely in the dark about the digital tax changes that HMRC is rolling out next April, and it’s bound to confuse. We’re doing all we can to make the preparations as easy as possible for clients and as part of our ongoing digital investment programme we are providing access to various resources and insights for all clients and contacts including blogs, videos, news, calculators and guides.
“An online portal is in place for clients which allows the secure and efficient exchange of documents and approval of accounts and tax returns. There are relevant guides and tools for entrepreneurs, SME’s, sole traders and start-ups and with MTD looming what we’re doing is providing access to valuable support and advice across all areas of business and finance.”
“Over the coming weeks and months, it’s important that businesses review systems and resources, first checking that they are compatible with HMRC and if so, how these can be further improved to make the switch to MTD with minimal disruption.
“It’s important to plan and act quickly as the earlier the transition is made, and the sooner businesses can start reaping the rewards. Software users must also give themselves enough time to ensure they are at ease with new systems before making the switch. Finally, speaking with an adviser will help business owners to prepare for the changes and ensure full compliance.”